According to Blockworks, shares of Trump Media & Technology, the social media company associated with Donald Trump, experienced volatility on Tuesday following reports of the company's potential acquisition of crypto exchange Bakkt. The Financial Times reported that Trump Media is in advanced discussions to acquire Bakkt, which is owned by Intercontinental Exchange, the parent company of the New York Stock Exchange.
The news led to a significant surge in Bakkt's shares, which rose by 162% on Monday, while Trump Media's shares, trading under the ticker DJT, saw a 17% increase. However, by Tuesday, Bakkt's shares continued to rise by 7% during the trading session, whereas DJT shares fell by over 8%. Trump Media began trading on the Nasdaq last spring after merging with Digital World Acquisition Corp. Currently, DJT shares are valued at around $30, marking a nearly 150% increase from their September low, although they remain approximately 40% below their initial public offering price of $50.
The recent performance of Trump Media's shares has been inconsistent. At the end of October, shares rose by 65%, driven by optimism surrounding Trump's potential election victory. However, since Trump's win, the share price has remained relatively flat, with only a modest increase the day after the election, followed by a decline. The market appears uncertain about the implications of Trump's victory for the social media company. The recent rise in shares suggests that investors are optimistic about the potential acquisition of Bakkt, but the subsequent decline indicates uncertainty among shareholders about the reasons behind this optimism.
The acquisition of Bakkt by Trump Media is a developing story, and its implications for the company and its shareholders remain to be seen. As the majority shareholder of a public company, Trump's move into the White House could have significant consequences for Trump Media. Further analysis and updates on this acquisition and its impact on the market are anticipated.